This paper empirically analyzes the effectiveness of Japanese intervention policies on the yen/US dollar exchange rate over the past decade. Using actual intervention data, this paper suggests that Japanese interventions were effective in affecting exchange rate movements when such operations were coordinated with the Fed. Furthermore, intervention operations were always associated with an increase in exchange rate volatility.
- Foreign exchange interventions
- Yen/dollar exchange rates
ASJC Scopus subject areas
- Economics and Econometrics